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Comparative Market Analysis (CMA)

stock-photo-4121232-housing-price-rise-graphGetting The Information You Need
Are you looking for a market analysis of your home or the home you’re thinking of buying? You want to know the value of the property that looks so attractive right now. We can help. Getting as much information about a home’s property value is crucial to being able to make an informed decision. Here are some commonly asked questions about Comparative Market Analysis (CMA).

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First, what IS a CMA?

The Comparative Market Analysis (CMA) is a side-by-side comparison of homes for sale and homes that have recently sold in the same price range and neighborhood. Other parameters include single-family, or condo, number of bedrooms and baths, zip code and many other factors. The purpose is to show a fair market value, based on what other buyers and sellers have determined through past sales, pending sales and homes currently on the market.

How is the CMA created?

CMAs are generated by the Multiple Listing Service that is available to licensed real estate members, brokers, salespeople, and appraisers, who pay dues for the privilege of using the service. Tax roll information, sold transactions, and listings input by all cooperating MLS members can be found on the service. Real estate agents generate CMAs for their sellers and buyers so both sides know what current market conditions are for the homes they’re interested in comparing.

How accurate are CMAs?

The CMA is a snapshot of the market, based on the most recent data available. It can instantly be rendered obsolete by a new listing or a change in status in a home. The market is constantly changing with new listings, pending sales, closed sales, price reductions, and expired listings. CMAs can vary widely, depending on the search parameters that are being used as well as the type of data fields that are chosen.

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CMA vs. Appraisal

Q: What is the difference between an appraisal and a CMA (Comparative Market Analysis)?”

A: A certified, licensed appraiser will complete a formal appraisal on the home that is for sale. The work done by an appraiser is usually done on behalf of the buyer and the buyer’s lender to ensure that the amount the bank is loaning the buyer does not exceed what the home is worth. A CMA is a similar tool that is completed by your real estate agent on behalf of a seller wanting to know what their home is worth or for a buyer to see if a home they are interested in is close the value they are asking. An appraisal is a more formal document that makes mathematical adjustments for certain features of a home to determine an exact value of the home in today’s marketplace. And, while a CMA is fairly accurate, it may not be a precise as an appraisal offering more of a “range” of value vs. an exact price.


Q: What if the home we are purchasing doesn’t appraise?”

A: The standard Colorado real estate contract provides protection language for the buyer to ensure they do not have to purchase a home that may not appraise for the price they have offered. However, there are several options if a home doesn’t appraise that a buyer and seller might agree to. For example, another appraisal might be ordered, the seller may lower the price to the appraised value, or the buyer may bring the difference between the appraised value and the purchase price (in cash) to the closing. Your lender will not determine your loan-to-value on a price that is above the appraised value, so a lower appraised value may affect your ability to purchase the home at the price you offered.

Contact Information

Sears Real Estate
Phone: 970-330-7700 Fax: 970-330-4766
Se habla español: 970-475-1042
2021 Clubhouse Drive #100
Greeley, CO 80634

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